Hi,
I took an early withdrawal from both a regular and a Roth IRA to pay for higher education late last year. Being out of work, I held them for nearly 60 days hoping I would not need them, but ultimately deposited them in my checking account. I kept the code in box 7 as 1, and then went through questions that clarified that these were not subject to an early withdrawal penalty.
First off, can one clarify whether these are counted to my 2022 taxes, or possibly is there a way to credit the deposits to my 2023 taxes? Since my income will be much less than last year, these withdrawals would be taxed at a lower rate than in 2022. (Bonus for me if the 2023 option exists...)
The other problem I am writing about surrounds the question that asks the amount about prior contributions (before the prior 5 years). I must've started contributing 20 or so years ago and then stopped. I did a few conversions since I started using TurboTax, so thankfully it keeps track of those amounts. However, I cannot find my records on total prior contributions for the Roth and small early withdrawals of my basis. I am estimating $50K - 60K remains, but I am just not sure exactly what my basis is now.
I put in $50K for that value in TurboTax and moved on, but clearly I do not want to trigger anything. What should one enter in this case? Is an estimate adequate? The withdrawal was only $2.5K, so I am hoping that since the basis is so excessively large compared to it, it should be fine.
Thoughts?
Thank you.
